Facebook
A man is silhouetted against a video screen with an Facebook logo as he poses with an Samsung S4 smartphone in this photo illustration taken in the central Bosnian town of Zenica, August 14, 2013 Reuters/Dado Ruvic

Top social network Facebook is being criticised for selectively exploiting UK tax rules to pay a lesser amount of dues.

Facebook’s income in the UK created an £11.3 million (AU$18.3 million) tax credit in 2015 even though it made close to £5 billion (AU$8.1 billion) worldwide based on the company’s most recent financial statements, raising suspicions that the social media leader is not paying its dues correctly.

The company allotted £4.1 million (AU$6.6 million) in UK taxes last year, a large amount compared that in 2014, which was only £4,327 (AU$7,032). The proclaimed £11.3 million (AU$18.3 million) tax credit can be adequately utilised to compensate forthcoming fees. The credit comes from tax provisions connected to one of Facebook’s employee bonus scheme.

Facebook continues to expand its market in the UK, creating 300 new high skill jobs in 2015. The social network giant has invested in a high-tech solar powered plane centre located in Somerset, hoping to provide Internet connection to isolated places all over the world.

Although Facebook’s tax settlements were considered legal based on UK laws, it did not stop critics from voicing their resentment. Tax Justice Network, a coalition of researchers and activists focused on the damaging impacts of tax evasion, weighed in on the issue.

"Facebook UK's accounts show specific issues, but point also to the real problem: that major multinational companies appear to be able to pick and choose, unlike the rest of us, where and how much tax they will pay," the group said.

Facebook earned US$3.7 billion (AU$4.8 billion) worldwide last year on revenues worth almost US$18 billion (AU$23.7 billion).

Agencies worldwide are now on a mission to put a stop to the tax practices of giant US tech corporations. Just over a month ago, the European Commission ordered Ireland to recover €13 billion (AU$19 billion) from Apple in back taxes. In January this year, Google complied to disburse £130 million (AU$211 million) in UK back taxes.